Settling a debt in collections
Date: Tue, 01/11/2011 - 17:29
I have 729.24 in collections with Finance System of Green Bay from a payday loan I defaulted on.
Any suggestions and how to's are welcomed. Have a nice day and be blessed.
Hi! Welcome to the forums! Contact your creditor and request him
Hi!
Welcome to the forums!
Contact your creditor and request him to pull the account from the collection agency. If the creditor grants your request, then negotiate for a settlement with him. Try to negotiate a pay for delete settlement agreement with your creditor even if you can't pay of the entire outstanding balance. This way, your creditor will request the credit bureau to delete the negative item from your credit report after receiving the payment.
If the creditor doesn't agree to withdraw the account from the collection agency, then contact the collectors and tell them that you would like to pay off the debt. Negotiate with the collection agency to settle your debts. Try to reduce the payoff amount by around 40%-60%. You can also negotiate a pay for delete agreement with the CA. After signing the settlement agreement with the collection agency, pay the settled amount on the specified date. Check your credit report to see whether or not the account status has been updated.
If you are not able to settle your debts on your own, then contact a reliable debt relief company. You can get a list of 168 verified debt relief companies from the Ranking Chart section of the DebtCC Community.
Quote: You can also negotiate a pay for delete agreement with th
Quote:
You can also negotiate a pay for delete agreement with the CA. |
By offering a Pay for Delete Letter, you're actually agreeing to repay the debt in full or settle it with the CA or the creditor. In return, they're expected to send another letter wherein they agree with your terms. This letter has to be signed by their representative and must follow your state rules. Remember, the FDCPA grants you the right to dispute a debt. So, in case they don't respond (by 15 business days), you may withdraw your offer.
It's a good thing if the pay-off amount actually gets lowered by
It's a good thing if the pay-off amount actually gets lowered by 40-60%. I'd also agree that you need to check your credit report from time to time. You may get a free copy of your credit report at annualcreditreport.com